Ohio Agents: August & November CE Schedule
Indiana Agents: Writing a Personal Umbrella 5 credits
Wisconsin Agents: New 9 Credit Day Offered
Michigan Agents: September & November CE Schedule
Credit Scoring Addressed by Michigan Supreme Court
A decision from the Michigan’s Supreme Court, handed down on July 8, 2010 ended a battle the Michigan Governor and Insurance Commissioner have been waging for the better part of a decade. The court found that the practice of using credit scoring in rating auto and homeowners is legal and the Insurance Commissioner does not have the authority to ban its use; that would require an act of the legislature, something which is highly unlikely.
The importance of the court’s decision in a down economy is emphasized by statistics from Fair Issac, released on July 18, 2010 that show a drastic decline in credit scores throughout the country. The report states that over 35% of those who have credit histories now have a credit score below 650, which means they are considered subprime. Over 43 million people currently have a credit score below 599. As a result, some who have lost their job in the recession are seeing their credit deteriorate and their insurance rates increase.
In Washington, the House Financial Services Subcommittee held hearings in May that examined the use of credit scores in underwriting and rating insurance but nothing is expected to materialize from the hearings. Perhaps with the new evidence of deteriorating credit, Congress will take a closer look. Since those in Washington seem to have no appetite for dealing with such issues as immigration, social security reform, and the exploding deficit, maybe they will find this issue a little more palatable.
Flood Update
The Escalade has been extricated from the giant sinkhole, the homes with eroded foundations are being torn down, and FEMA has arrived in town to help. Milwaukee is recovering from the third 100 year flood in four years making us all aware of the deficiencies in the city’s infrastructure. One can feel the pain of the property owners who had no flood insurance; when will we learn that any property can be flooded?
At least flood insurance is once again available. Last month I reported that the federal program lapsed on May 31, the fourth time in less than a year. As an update, the President signed a bill on July 2nd reauthorizing the program through September 30, 2010 and made the reauthorization retroactive to cover the lapse period. Even with this belated response, Congress is still getting beaten up for playing politics with an issue as important as the availability of flood insurance. PIA National President-elect Brian Marino stated, “This is yet another short term fix, as Congress has once again kicked the can down the road to September 30, 2010." Later in July, the House passed a five-year extension of the program including some significant changes; the Senate will take up the bill next. Hopefully they have heard the outcry from people who feel it is unconscionable to have an expiration date that comes during a hurricane season that is predicted to be very active.
Minnesota CE Instructor Caught in the Act
A Minnesota CE instructor, who has been teaching classes since the mid 1990’s, was recently busted when an undercover investigator, acting on an anonymous tip, signed up for his class. According to an article in the Minneapolis Star Tribune, agents who attended the class paid $90 and received 15 hours of credit in only 59 minutes. The department of insurance has suspended the license of the instructor, Robert Huge, and two Aflac agents who allegedly helped organize the class.
An investigation has shown that since 2007, Huge has conducted bogus classes for more than 300 insurance agents working for such big-name firms as Aflac, Allstate, UBS, R.W. Baird, Wells Fargo, and Lincoln Financial. When asked if action would be taken against the agents involved, a spokesperson for the state replied, “The law is pretty clear. If they don’t have appropriate continuing education credits, their license is not valid.” Don’t ever again ask me to let you out early; I will refuse simply for your own good.
Quote of the Month:
All that I ask is that you consider changing your life by changing your mind – one day at a time.
Anonymous
Newsletter CE Winners
Winners will be announced each month in this newsletter and should contact Angela at angela@insurancece.com to redeem their winnings. To win, you must be signed up for this newsletter. Spread the word.
August's winners are:
Steven Maraccini@ Sparks Insurance in Kenosha, WI
Rose Thompke @ Larkin Ins. Group in Traverse City, MI
Deborah Brown @ Donahue, Stangle & Brown in Frankfort, OH
Who We Are:
InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it. | August's 50% CourseFraud and the Agent 5 credits only $25
|
|
|
